In Quebec, sales increased 4.0 percent, adding to a 6.0 percent rise in June. The advance was broadly based as higher sales were seen in 17 of 21 industries. Aerospace firms posted the largest increase in production in dollar terms, rising 6.4 percent.

Sales fell by 4.0 percent in Alberta in July, largely because of a 10.7 percent drop in food sales. Lower petroleum and coal product sales also contributed to the decline.

Manitoba, Saskatchewan, Newfoundland and Labrador, Nova Scotia and British Columbia all recorded declines in sales.

Manufacturers reported a 2.0 percent drop in inventories compared with June. Inventories have been decreasing all year.

The backlog of unfilled orders fell 4.3 percent in July to $57.1 billion, largely due to a 6.4 percent decline in the aerospace industry.

New orders fell 3.7 percent in July to $38.8 billion. The decline was concentrated in the aerospace industry.